Maharashtra to probe alleged irregularities in Mumbai district coop bank led by BJP leader

The Maharashtra Vikas Aghadi (MVA) government has initiated an inquiry against Mumbai District Central Cooperative Bank (MDCCB) headed by leader of opposition in legislative council and Bharatiya Janata Party (BJP) leader Pravin Darekar for the alleged irregularities in the bank over last five years.

The Maharashtra Vikas Aghadi (MVA) government has initiated an inquiry against Mumbai District Central Cooperative Bank (MDCCB) headed by leader of opposition in legislative council and Bharatiya Janata Party (BJP) leader Pravin Darekar for the alleged irregularities in the bank over last five years. The cooperation department has initiated the inquiry into the alleged irregularities related to bad loans given to corporate entities, redevelopment of housing projects, irregularities in gold mortgage loans, misappropriation in purchase for computerisation system among others.

The cooperation department has initiated the inquiry into the alleged irregularities related to bad loans given to corporate entities, redevelopment of housing projects, irregularities in gold mortgage loans, misappropriation in purchase for computerisation system among others. (Anshuman Poyrekar/HT Photo)

Divisional joint registrar Bajirao Shinde issued the order of inquiry for 10 types of irregularities in MDCCB in the past five years. District sub-registrar Pratap Patil has been tasked with conducting the inquiry and submitting the report in three months.

The bank is headed by Darekar as its chairman and the action is seen as the MVA government’s reply to the action and inquiries initiated against ministers and leaders from the ruling parties. MVA ministers such as Anil Parab, Hasan Mushrif and leaders from ruling parties including Shiv Sena MP Bhavana Gawli, Mumbai mayor Kishori Pednekar are facing charges of corruption levelled by BJP leaders.

The inquiry notice dated September 22 has been served under section 83 of Maharashtra Cooperative Societies Act, 1960. “The inquiry will be conducted into the expenditure on the repair and renovation of movable and immovable properties belonging to the bank in the last five years. The loans given by the bank for redevelopment of housing societies, corporate houses which turned out to be bad loans too will be inquired into. Probe will also conducted into loans given out of its area of operation and loans given to sugar factories. The irregularities into loans given on mortgage will also be probed. The loans given to cooperating housing societies on the basis of forged documents too will be probed,” the notice stated.

The inquiry has been initiated on the basis of the inspection report submitted by the cooperation department on August 10.

Darekar alleged that the action initiated by the government is politically motivated and out of vendetta.

“The state government had ordered such inquiries in the past too. We have come out clean every time. The compliance report submitted after the inquiries under section 83 and 88 in the past have been accepted by the cooperation department. The bank has received Class-A certificates by cooperation auditors for the last 10 years. The bank is headed by the board of directors representing all political parties and they share equal responsibilities of the irregularities, if any. We are not resisting any action, but it is an attempt to suppress the voice of the opposition. We are going to demand inquiries into corruption in Pune district cooperative bank, state central cooperative bank and other cooperative entities under the leadership of the Nationalist Congress Party (NCP). We will push for inquiry into these irregularities by central agencies like the Enforcement Directorate and Central Bureau of investigation along with state regulators,” he said.

Deputy chief minister Ajit Pawar said the action by cooperation department against MDCCB is on the basis of a complaint received by the department. “Darekar or other BJP leaders are free to make complaints against the state cooperative bank or Pune district bank to any agency. The directors responsible for irregularities will face consequences,” he said.

MDCCB has faced the inquiry in the past as well. In September last year, a team led by divisional joint registrar was asked to enquire into losses of ₹47.99 crore sustained by the bank and 7.11% drop in capital receipts. The probe was also ordered to examine loans given to sugar factories and corporate loans and their recovery, expenditure on modernisation of bank offices and its computer mechanism over past five years, and loans given to cooperative housing societies under its ambitious redevelopment scheme. It also faced the inquiry into the disbursement of loan of ₹2.35 crore to Darekar’s relatives using fake documents.